The Keck Failure In The Courts

Michael Keek Bied an important bill in chaneery, Tuesdav, which vvill open np the wliole controversy over the Keek failure and jfive plenty of occupatlOD for the courta and lawyers. The bill makes as defendants William Aprill, John KecK, First .National Bank of Ann Arbor, Farmers Mechanics Bank of Ann Arbor, The Ann Arbor Savings Bank, Lnther James, Frederiek Keek and Martin Keek. The real defendant in the case is William Aprill. The bill of complaint is a long one and is of sueh general interest that we recapitúlate a Urge portion of it here. It sets forth that for several years prior to 1886, John Keek was in business in Ann Arbor and Detroit, liad invested $100.000 in the business and had apparently unincumbered stock worth S75.000; that for some years Michael Keek bad iudorsed accomodation notes or him; that on July 2, 18S6 hejindorsed v note for 4,500 payable at the National Jank whicb was rene wed Octnber 2nd; hat on December 4th. he c;rat: to Anu Vrbor to make arrangements to project ïimself on account of the failure of Tolm Keek and on that date Philip iaeh state.d to him in the presencë of Wm. April that John Keek h;ul turned ver his property to Williani Aprill as ïustee for the payment of his debts md that out of the property he would ?ay at least a large portion of the $4,00 note. That on this occasion hs irst learned that he had indorsed a ïote fo'r $4,5(10, the son and agent of John Keek having led him to believ that the note amounted to only $1,600; that Philip 15aeh peisuaded him to giv ri mortgage for $4.500 in order to protect the bank [and avoid trouble with Detroit parties and on the assuranc that he would never have to pay mor than $1,500 if he had anything to pay; that the suid mortgage ia now in th possession of Luther James. Mr. Michael Keek lso alleges at th time he eigned the note he supposed that was 11 the lndebtedness of Johu Keek, that previous to that datehowever, Iwo mortgaaes had been given by John Keek to William Apiill and had fraudulently been kept f rom record. One of these mortgages, made September 29th. lh80. for $20.000 was on th Keek block and the other a chattel mortgageforS 15,000 was tor the stock of goods in the store Hiul was given November 30tli 1885. These mortgagei were givento secure William Aprill for having indoised Keck's paper. He set t'orth tnat Keek was lieavily indebted and on November 30th, 1886, he gave a ehattel mortgage on nis stock in Detroit to Ilenry A. Harmon as truste tor Detroit creditors and out of the goods and cliattels in Detroit, the Detroit indebtedness had been satisfiecl and discharged. He also sets forth u mortgapre given to William Aprill ai trustee bv Jolm Kesk, November 30th, lSi6. on all his goods to secure all note made by John Keek & Co. and iudorsed by one or more of the following persons, Martin Keek, Michael Keek, Frederiek Keek, and William Aprill and held bv the three Anu Arbor banks, the National bnk holding S,IXJO, the Farmers & Mechanica, $5,000-, and the Saviugs Bank, $3,600; that on Dec 1,1886, John Keek gve a mortgnge on the building to William Aprill, hs trustee, for $15,000 to secure the payment of tlie same notes, Uat I?b a!?S gave Aprill a ehattel mortgage öu thi Detroit property. That on December 6th 1886, John Keek deded the Keek block to William Aprill for $1; that on December 3rd he deeded his house to him namiug $1,500 as the consideration: that Aprill accepied the mortgttges as trustee. The complainant charges that Aprill was not Hable for $18,500 to th First National Uank, but avers iu caw that he was, the total indebtedness amounted to $36,500. The bilí shows that the chattels in Detroit vrere sold and after payiug Detroit creditors under the Harmon mor cage, $4,0oü wan uirmxl over tó Aprllf as trustee. He avere that Aprill ahould ttave realized $15,0üü and henee lost $11,000 to th creditors. It shows thaí Aprill has been recíiving $1,500 per year rent for the building known as tht Keek block. Th ia block is said to b worth $25,000; on which there U.$l,200 encumbreiiice. It shows that the Keek house has len sold by Aprill f or $2,000; that h sold the stock in the store here, whicli was worth 20,000, to Riclimoud &Treadwell for $11,700; that he took posst-ssion of $6,000 worth of accounts and other property worth $2,000 whick he has sincu diepoeed of. Recapitulating iheabovec'raplaiiití,the complainant avers that Apiill has reeeived $40,000 worth of propertv íuidhascouvertel this all to his own use exceptiug aboiu $6,000 whih he clíiinas to hoKl u9 trustee, líe claims that the mortí;a}íesgiveii tn 1881 and 1885 are void. lie asks that these two mortgages bt declaied void and that Aprill be declared seized of the KecU bloeit and the Keek house as trustee for the creditors and tliut Aprill should be compelled to give an account of his doings aa trustee and applv the sums ni his.posession pro rata in the pay ment of debts.